Many people already understand what accounting is and indeed need to be recognized that accounting is a broad science. For that, if you want to explore accounting, you must understand the various fields of accounting itself.
When viewed from the standpoint of its function or usefulness, accounting is a service activity that provides important information for evaluating the running of a company. So that allows the leadership of the company or parties outside the company to make considerations and take the right decision.
If viewed from the point of view of its activities, accounting is a process that includes the identification or determination, measurement and delivery of economic information.
Also Read: Accounting Information Systems in Companies
In its implementation, all financial transactions that occur within a certain period are processed in the following stages of activity:
- Identifying ( identifying) and Measurement ( measuring ).
- Recording ( recording).
- Classification ( classification).
- Summary ( summarizing).
- Compilation of Financial Statements ( reporting).
1. Financial Accounting ( Financial Accounting )
This field deals with the accounting of a whole economic unit. Financial accounting is related to financial reporting for parties outside the company. This successful report is general purpose . Its activities include recording financial activities aimed at being able to present financial reports. Financial statements that include a balance sheet, income statement and statement of changes in capital or statement of retained earnings for a certain period. This financial report can be used by those who need it as information for rational and relevant decision making and policy.
2. Accounting Inspection ( Auditing )
In accounting auditing , auditing activities are carried out on the results of records and reports in finance. This field deals with audits that are freely carried out on reports produced by financial accounting. Although the main purpose of the audit is to provide reliable accounting information, there are other objectives such as adherence to policies, procedures and assessing the efficiency and effectiveness of an activity. In this concept, underlying audit is the objectivity and independence of the examiner as well as the secrecy and gathering of fairly relevant evidence.
3. Cost Accounting ( Cost Accounting )
Cost accounting is an accounting field that records and calculates and analyzes a cost data on an industrial company in an effort to determine the cost of goods manufactured or a product. For this reason, with the existence of cost accounting, a price report will be obtained to prepare the financial statements. This area emphasizes a determination and a control over costs. Cost accounting will lead to activity based costing . With the main function of collecting and analyzing data about costs, both the costs that have occurred and will occur.
4. Management Accounting ( Management Accounting )
Management accounting is the field of accounting which aims to provide information to management in carrying out its business. Many things are contained in cost accounting whose data is utilized by management accounting. So, even though the two fields of accounting have different objectives, in their implementation they can be carried out simultaneously. Some of the uses of management accounting are to control company activities, monitor cash flow and assess alternatives in making a decision. Control of the company through activities carried out ( activity based management ), is a new trend in management accounting.
5. Tax Accounting
Tax accounting is accounting whose activities are related to the determination of tax objects which are borne by companies and their calculations for the purposes of preparing tax reports. Tax accounting activities serve to assist management in determining the choices of transactions that will occur related to taxation considerations. Therefore, accounting who work in this field must know well about the applicable tax laws.
6. Peranggaran ( Budgeting )
Budgeting is an accounting field that compiles both revenue and expense budgets. The budget is a guideline for companies, individuals or governments in carrying out financial activities in the future. This field deals with the preparation of financial plans related to company activities for a certain period in the future and their analysis and supervision. The budget can also be said as a suggestion to describe the company’s goals, the budget contains planned activities to be carried out and the value of money in the future.
7. Government Accounting ( Governmental Accounting )
Government accounting is a field of financial accounting that is applied in government institutions. This government accounting aims to present a financial report, control and supervision of state finances. Government accounting is expected to regulate the administration of state finances well. This field specializes in recording and reporting transactions in government agencies.
8. Accounting System ( Accounting System )
The accounting system is an accounting field that carries out activities by designing ways to take accounting records so that they are safe, effective and efficient. Starting from organizing documents to compile recording procedures.
9. Accounting Budget ( budgetary accounting )
Budget accounting is accounting whose activities are related to the collection and processing of data on financial operations that have already taken place, as well as an estimate of the likelihood that will occur for the purpose of determining the company’s financial operations plan (budget) within a certain period.
10. Banking Accounting
Given the notion of accounting as a process of recording, classifying, analyzing and interpreting financial data. So in general it can be seen that banking accounting is a bank accounting process that also includes recording, classifying, analyzing, interpreting bank financial data which is carried out systematically to meet the needs of interested parties both internal and external.
11. International Accounting
International Accounting is a single standard accounting reporting that put pressure on the ratings ( revaluation ) professionals with the disclosures clear and transparent about the economic substance of the transaction, the explanation to reach certain conclusions. With accounting standards regulations or rules that govern the preparation of financial statements. While the process of preparing or formulating accounting standards is called standard setting. There are several reasons why accounting standards are needed, including:
- Many countries’ penalties for non-compliance with accounting provisions tend to be weak and ineffective.
- Companies may report more information than they should voluntarily.
- Some countries allow companies to ignore accounting standards if their operations and financial position are well presented.
The setting of accounting standards generally involves a combination of private and public sector groups consisting of the accounting profession. The role and influence of these groups in setting accounting standards varies from country to country.
12. Educational Accounting
Accounting education is a specialized field of accounting that leads to the field of education, namely in accounting learning and teaching activities or other aspects relating to the problem of education itself. Policies in the form of education decentralization are believed to be able to improve efficiency, relevance, equity and quality of education and fulfill the principles of justice and democratization. The results of the study indicate that there are several aspects of accounting education, namely:
- School budget.
- School infrastructure.
- School management.
- Parent student participation.
- Accountability of implementation.
To achieve the goal of decentralization of education, the government needs to restructure education, especially in relation to the institutional structure of education. In line with that, the government needs to prepare a legal basis in the form of laws, government regulations and ministerial decrees to implement education decentralization to fit the spirit and spirit of regional autonomy.
13. Social Accounting
Social accounting is accounting that handles the communication process of social and environmental impacts on the economic actions of a business entity for the benefit of certain groups of society and the wider community. Namely the use of social accounting for social responsibility programs (c orporate social responsibility ) of companies. This accounting is also called accountability accounting. Examples of social accounting are the provision of scholarships to the community.
14. Public Sector Accounting
Public sector accounting as an accounting of public funds which can then be interpreted as a mechanism of accounting techniques and analysis applied to the management of public funds in high institutions of the state and its ministries.
15. Behavioral Accounting
Behavioral accounting is the science of accounting combined with social science. In other words, behavioral accounting is the study of the effects of human behavior so that it can influence accounting data and business decision making. Also vice versa, how accounting can affect human behavior and business decision making.